One Timeframing and Amibroker Exploration Code

One Timeframing is a simple, powerful, and popular concept when comes to a market profile trader. One Timeframing generally refers to a market that is trending in one direction. In simpler terms candlesticks constantly making higher lows and the consecutive candles should not breach the lows of the previous candle by not more than 2-ticks in the up-trending move then it is called One-Timeframing Up. IF the candles/bars are constantly making lower high and and the consecutive candles should not breach the high of the previous candle by not more than 2-ticks in the down-trending move then it is called One-Timeframing Down.

One-timeframing happens across all the timeframes but from an intraday trading perspective 30min daily profile charts provide a meaningful indication for mean reversion trading. Either one can practice mean-reversion trading, partial profit booking or tighten/trail his stops when one timeframe occurs on 30min charts.

Post One Timeframing occurrence either the market can balance(move sideways) near the Onetimeframe zone or mean revert. One Timeframing is a very good visual concept from a day timeframe trader’s perspective. The following One Timeframing Indicator and Amibroker Exploration provide one-timeframing indication with red and green circles and indicate the presence of one-timeframing visually. The afl code looks for a minimum of 4 consecutive candles for the occurrence of one timeframe activity.

One Timeframing Amibroker Exploration Code

//Coded By Rajandran R
//Date : 12 Jan 2016

_SECTION_BEGIN("One Timeframing Exploration");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", ParamColor("Color", colorDefault ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() ); 

OTsell = Ref(H,-4)< Ref(H,-3) AND Ref(H,-3)< Ref(H,-2) AND Ref(H,-2)< Ref(H,-1);
		
		
OTbuy = Ref(L,-4)> Ref(L,-3) AND Ref(L,-3)> Ref(L,-2) AND Ref(L,-2)> Ref(L,-1);
		

shapes =  IIf(OTsell,shapeHollowCircle,IIf(OTbuy,shapeHollowCircle,Null));
color = IIf(OTsell,colorred,IIf(OTbuy,colorgreen,Null));
offset = IIf(OTsell,H,IIf(OTbuy,L,Null));

PlotShapes(Ref(shapes,1),Ref(color,1),0,Ref(offset,1),-12,0);

Filter = OTsell OR OTbuy;

AddColumn(C,"Close",1.2);
AddColumn(Ref(OTbuy,1),"OT Buy",1);	
AddColumn(Ref(OTsell,1),"OT Sell",1);		

_SECTION_END();

Download One Timeframing Amibroker Exploration

Note: we are interested only in consecutive candles whereas the textbooks and the internet reference might differ as many consider inside bar which still not breaking the previous bar high/low and making higher high or lower low also as a part of One-Timeframing.